How to pass CIPS L4M5 exam with the help of dumps?

Question # 1

Whenimplementing value analysis or value engineering, which of the following acronyms reminds both buyer and supplier of ideas on removal, substitution and design-out of cost elements? 

A. SMART 
B. STOPS WASTE
 C. OWN-IT 
D. SAMOA 

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Question # 2

In a commercial negotiation, a procurement professional negotiates on his company's behalf. The power of buying organisation is the only factor that influences the behaviours of the other party. Is this assumption true? 

A. Yes, because the outcomes of negotiation are attributable to the buying organisation 
B. No, because personal power of negotiators also attributes tothe outcomes 
C. No, because power of supplier is the only factor that influences the other party 
D. Yes, because buyer's brand, reputation and purchasing spend largely determine the outcomes 

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Question # 3

Which type of question should be used to receive affirmation on statement? 

A. Open 
B. Closed 
C. Leading 
D. Narrow 

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Question # 4

Buying organisation may increase its leverage with suppliers by concentrating spend. Which of the following are most likely to be forms of supplier spend consolidation? Select THREE that apply. 

A. Forming purchasing consortia  
B. Volume consolidation across categories
 C. Volume separation 
D. Paying supplier on time 
E. Volume redistribution
F. Simplify procurement process 

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Question # 5

Which of thefollowing are most likely to be sources of conflict that can emerge from the content of commercial negotiations? Select TWO that apply. 

A. Framework arrangement 
B. Payment terms 
C. Contract governing law 
D. Requisition 
E. Cultural differences 

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Question # 6

A purchasing manager is having a negotiation with a supplier to extend the duration of the contract. In order topersuade the supplier to cut the cost by 10%, she promises to shorten the payment period from 45 days to 30 days for each delivery. The supplier's representative does not agree the offer and clearly states that his proposed price is already lower than the market price. The purchasing manager has used which type of power? 

A. Reward 
B. Expertise 
C. Coercive 
D. Informational 

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Question # 7

Katie is preparing a negotiation with a strategic supplier. Through deep market analysis, she realises that her company and the supplier have equal bargaining power. Via regular communication, Katie knows that both parties are arguing on amount of liquidated damages and neither party shall concede all of their requirements but some are negotiable. Katie and her counterpart from supplying company still desire a long-term relationship and hope that the meeting between them will be a solution for current situation. Which of the following isthe most appropriate approach that Katie should adopt to achieve the above outcome? 

A. Avoiding approach 
B. Competing approach 
C. Compromising approach e directly than avoiding but doesn’t explore it in as
D. Accommodating approach 

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Question # 8

An experienced procurement professional is developing strategies for forthcoming negotiations with her key supplier. To avoid negotiation deadlocks, she identifies the reasons whynegotiations could fail. Which of the following are most likely to be reasons for negotiation failures? Select TWO that apply. 

A. Underlying interests of TOP are overlooked 
B. MIL objectives are well established 
C. Both parties focus on common interests 
D. Buyer helps to create a co-operative atmosphere 
E. Unachievable objectives were set up 

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Question # 9

Which of the following should be adopted to minimise the conflict between parties in commercial negotiation? 

A. The rule of law 
B. Ground zero 
C. Ground beam 
D. Ground rules 

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Question # 10

Which of the following are most likely to be characteristics of a perfectly competitive market? Select TWO that apply 

A. In a competitive market, both buyers and sellers areprice givers 
B. Firms can freely enter or exit the market 
C. In a perfectly competitive market, each seller has a large impact on the market price A perfectly competitive market consists of products that are all slightly different from one another 
D. There are many buyers and sellers in the market 

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Question # 11

In which of the following persuasion methods, the influencer uses logics and objective reasons to persuade the others to buy intoinfluencer's ideas? 

A. Persuasive reasoning (push) 
B. Collaborative (pull) 
C. Visionary (pull) 
D. Directive (push) 

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Question # 12

Leitax is a consumer electronics firm with headquarters in the US and with a global sales presence. The company maintains seven to nine models in its product portfolio, each of which has multiple SKUs. Product life ranges from fifteen to nine months and is getting shorter. The demand planning and master planning processes at the company were illdefined. Data relevant to forecasting were usually inaccurate, incomplete, or unavailable and the lack of objectives and monitoring mechanisms for the demand planning process meant that process improvement could not be managed. Support for supply management was equally ill-defined, as master production schedules were sporadic and unreliable and suppliers had learned to mistrust them. Leitax's newly appointedSupply chain director, Jessica realises that the “buy-in” of different functional groups was critical to the improvement of demand planning. She invites relevant stakeholders to a meeting so that they can express their opinions openly. What tactic is Jessica using? 

A. Coalition 
B. Pressure 
C. Consultation 
D. Persuasion 

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Question # 13

Telephone is most likely to be used for which of the following negotiations? 

A. High value contract 
B. Contract for purchasing a specialised product 
C. Routinetransactions 
D. Complex one-off purchase 

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Question # 14

XYZ Ltd is importing goods from overseas. They prefer to pay theirsupplier in their own currency. Which of the following is a true statement?  

A. Supplier will receive less if XYZ's currency appreciates 
B. XYZ has an advantage in negotiating discounts if their currency appreciates 
C. XYZ is able to pay less if their currency depreciates
 D. XYZ has to pay more if their currency depreciates 

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Question # 15

All of the following shift the supply of watchesto the right except...? 

A. An advance in the technology used to manufacture watches 
B. A decrease in the wage of workers employed to manufacture watches 
C. An increase in the price of watches 
D. Manufacturers' expectation of higher watch prices in thefuture 

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Question # 16

In a detailed cost breakdown, a company has a salary cost of 9%, raw materials cost 51% and overheads cost 24%. Which of the following represents themark-up of that company? 

A. Approximately 84% 
B. Approximately 19% 
C. Approximately 116% 
D. Approximately 16% 

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Question # 17

Economic growth can be measured by...? 

A. The PPI 
B. GDP 
C. The CPI 
D. SBLI 

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Question # 18

JCB is a large manufacturer of heavy machinery. The CPO is going to a negotiation with a Chinese supplier about procuring some major components. He is wondering about balance of power in the negotiation. Which of the following micro factors are most likely to shift the balance of power towards the buying organisation in this commercial negotiation? Select TWO that apply 

A. Buyers purchase in small volumes 
B. Suppliers are more concentrated than buyer
C. Eruption of epidemic in supply market 
D. JCB's switching costs are low 
E. These components are highly standardised 

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Question # 19

Which of the following are types of questions that are useful in opening and testing phases of a negotiation? Select the TWO that apply. 

A. Closed 
B. Narrow 
C. Probing 
D. Leading 
E. Open 

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Question # 20

Where can we find the data on macroeconomics? 1. From trade journal 2. From supplier's marketing catalogue 3. From stock exchange market 4. From government's statistics 

A. 2 and 4 only 
B. 3 and 4 only 
C. 1 and 2 only
D. 1 and 3 only 

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Question # 21

Which of the following are effective approaches when procurement professionals negotiate with monopoly suppliers? 1. Delaying payment with monopoly suppliers as long as possible to increase bargaining power 2. Setting up stronger BATNA 3. Engaging in the negotiation with a distributive approach 4. Eliminating requirements in the specification that prioritises monopoly suppliers

A. 1 and 4 only 
B. 3 and 4 only 
C. 2 and 3 only 
D. 2 and 4 only 

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Question # 22

Can a party gain huge advantages innegotiation from setting room layout? 

A. Yes, because the host can freely manipulate the other party's mind through setting room layout 
B. No, because the advantages gained from manipulating room layout are short-lived 
C. Yes, because the other party can capitulate to the host 
D. No, because room layout contributes nothing to the negotiation outcomes 

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Question # 23

An automotive company purchases high quality steel to produce components. The steel is an important raw material and the contract value is enormous. They sources the steel from oversea and contact some potential suppliers. One of the potential suppliers invites the procurement team to their premise for a new business opportunity. Should the procurement team accept the invitation? 

A. No, because negotiating over telephone is enough to collect information on supplier's capability
B. Yes, because the visit would increase the buyer's bargaining power 
C. Yes, because this is an opportunity to assess the supplier's capacity 
D. No, because the travel would incur unnecessary costs 

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Question # 24

Which of thefollowing is the purpose of using stakeholder support level scale? 

A. To identify stakeholder level of influence and interest and plot them on stakeholder map 
B. To identify stakeholder's needs and expectations 
C. To estimate the gap and the progress towards desired levels of support 
D. To identify key stakeholders 

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Question # 25

In general, which of the following is the consequence of a flatter demand curve? 

A. Quantityelastic 
B. Price elastic 
C. Price inelastic 
D. Unit price elastic 

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Question # 26

According to Dr. Mari Sako, which of the following is potentially the weakest trust to be built? 

A. Competence trust 
B. Goodwill trust 
C. Charitable trust 
D. Contractual trust 

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Question # 27

Which of the following isthe definition of safety margin? 

A. The difference between current or forecasted sales and sales at the break-even point 
B. The amount of revenue that remains after subtracting costs directly associated with production 
C. The production level at which total revenues for a product equal total expenses
 D. The incremental money generated for each product/unit sold after deducting the variable costs 

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Question # 28

End users are the only stakeholders that are involved in the preparation of a negotiation. Is this statement true? 

A. Yes, because end-users have greaterexpert power 
B. Yes, because only end-users understand their demand 
C. No, because end-users are external stakeholders 
D. No, because budget holders also play an important role 

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Question # 29

According to Fiona Dent and Mike Brent, which of the following are characteristics of Push approach? Select TWO that apply. 

A. Inspirational 
B. Persuasion 
C. Collaborative 
D. Seeking commitment 
E. Directive 

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Question # 30

A senior buyer analyses the supply market and he realises that his organisation is treated asExploit according to supplier's perspective model. What does he need to do? 

A. Adopt opaque processes 
B. Increase the spend value 
C. Raise the transactional costs to do business
 D. Pay the suppliers on time 

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Question # 31

XYZ Ltd decides to go to market for a cleaning contract to service a number of offices. It knows that it will get a price which may, ormay not, be better than the one it is currently paying. To gain leverage in the marketplace, the organisation decides to add other related services to the scope, such as gardening, security and maintenance, which increase the value of the contract. This is an example of which forms of spend consolidation? 

A. Purchasing consortia 
B. Volume consolidation across categories
 C. Volume pooling 
D. Volume redistribution 

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Question # 32

Commercial negotiation ends at the award of a contract. Is this statement true?

 A. Yes, because there are no rooms for negotiation after the contract is awarded 
B. Yes, because the supplier will comply with legally binding obligations 
C. No, because improvements can be achieved through post-award negotiation 
D. No, because real commercial negotiation begins after the contract is awarded

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Question # 33

Information generated through Purchase Price Cost Analysis can be useful to the purchaser, by helping to identify which of the following costs relating to the supplier? Select the THREE that apply. 

A. External costs 
B. Profit
C. Material costs 
D. Market costs 
E. Budgeted costs 
F. Depreciation on equipment 

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Question # 34

Stalemate is morelikely to happen if both parties trade more variables in a commercial negotiation. Is this assumption true? 

A. No, because the party who offers more variables will have lower bargaining power 
B. Yes, because the negotiation will last endlessly if there aretoo many variables 
C. No, because more variables will facilitate more possible negotiated outcomes 
D. Yes, because more variables will cause more conflicts of interest

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Question # 35

Which ofthe following is a true statement regarding macroeconomic factors and their potential impact on negotiations? 

A. Macroeconomic factors always directly influence the negotiations 
B. Expectations on macroeconomic prospect are always correct 
C. Changes in macroeconomic factors may affect businesses and individuals differently 
D. Macroeconomic factors cannot be influenced by anyone's expectation or sentiment 

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Question # 36

Distributive approach in negotiation is typified by which of the following? 

A. Distributive approaches are inherently inferior tointegrative approaches in commercial negotiation 
B. Both parties understand each other's goals 
C. Each party attempts to maximise the value obtained at other's expense 
D. Both parties share 50:50 of the 'pie' 

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Question # 37

A buying organisation with a low spend and the reputation for paying late might be viewed by a supplier as which of the following? 

A. Develop 
B. Nuisance 
C. Core 
D. Exploit 

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Question # 38

Which of the following are factors that might shift the demand curve for a consumer good to the right? 1. Prices of complementary goods decrease 2. Price of the consumer good decreases 3. Customers' expectation of higher prices in the future 4. Consumer tastes shift toward substitute products

A. 3 and 4 only 
B. 4 and 2 only 
C. 1 and 3 only 
D. 1 and 2 only

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Question # 39

Rose is a senior buyer from a skiing equipment retailer. Rose is concerned about the current ski boot shortage and the number of invoicing problems from a key supplier. Shehas decided to have a video conference with Victor, CEO of the supplier. Initially, she intends to threaten Victor with contract termination unless he can improve the situation. However, she is a little wary of doing this as the switching costs are high. Eventually, she decides to seek solutions by encouraging the other party to offer their views and ideas. Rose also prepares some ideas to discuss with Victor. Which of the following is the persuasion method that Rose intends to use in the forthcoming conference? 

A. Directive (push) 
B. Persuasive reasoning (push) 
C. Collaborative (pull) 
D. Visionary (pull) 

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Question # 40

Sumitomo Rubber Industries (SRI) is a Japan-based tyre manufacturer. In order to increase production, SRI is sourcing rubber from Southeast Asian firms. Which of the following micro factors are most likely to shift the balance of power to supplier? Select TWO that apply s: 

A. SRI's purchase amount makes significant proportion of supplier revenue 
B. Costs of changing suppliers are high 
C. Rubber from different suppliers is virtually similar 
D. SRI sets up its own rubber plantation 
E. There are no close substitutes for rubber 

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Question # 41

Which of the following can help both parties to break the vicious cycle of blame when a relationship needs repairing? Select TWO that apply. 

A. Both parties understand each other's goals 
B. Focusing onpositions 
C. Conflict management skills 
D. Constant shadowing and oversights 
E. Emotional-based assessment 

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Question # 42

Which of the following are most likely to be fundamentals of Fisher & Ury's principled negotiation? 1. Depersonalise the argument 2. Focuson positions 3. Generate creative options 4. Using subjective criteria 

A. 2 and 3 only 
B. 2 and 4 only 
C. 1 and 3 only 
D. 1 and 4 only 

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Question # 43

Which of thefollowing is an objective of proposing phase? 

A. Check hypothesis and assumptions 
B. Trade concessions 
C. Create atmosphere conducive to agreement 
D. Start making tentative offers 

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Question # 44

Which of the following is a disadvantage of absorption costing method? 

A. Fixedcost allocated to products on the basis of the cost of activities used in producing them 
B. Variable costs are not taken into product final costs 
C. Using marginal cost of producing addition units 
D. Limited understanding of true costs incurred 

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Question # 45

A buying organisation with a low spend but the reputation for paying on-time. In order to increase buyer's leverage in negotiation with suppliers, which of the following should be a priority of this buyer?

 A. Unclear tender award criteria 
B. Volume separation 
C. Spend concentration 
D. Unavailable technical support 

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